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Threats, Lies and Chinese Stocks

Reverse-merger stocks may be mostly an unhappy memory, but the recriminations are very real. Here's the latest.

Hundreds of Chinese businesses that became U.S.-listed stocks through a maneuver called a "reverse merger" now languish at penny-stock levels, down from tens of billions of dollars in aggregate market value a few years ago. Who's to blame? Ugly accusations abound.

The wind-power vendor CleanTech Innovations (ticker: CTEK.Pink Sheets) went to court in December complaining that Nasdaq delisted the company after CleanTech's financial advisor was mentioned in a purportedly "anti-China" story in Barron's...